Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Basis of Presentation
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal and state awards (SEFSA) includes the federal and State grant activity of Town of North Wilkesboro under programs of the federal government and the State of North Carolina for the year ended June 30, 2023. The information in SEFSA is presented in accordance with the requiements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Implementation Act. Because the schedule presents only a selected portion of the operations of Town of North Wilkesboro, it is not intended to, and does not, present the financial positions, changes in net assets or cash flows of Town of North Wilkesboro.
Title: Summary of Significant Accounting Policies
Accounting Policies: Basis of Presentation
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the SEFSA are reported on the modified accrual basis of acocunting. Such expenditures are recognized following the cost prinicples contained in the Unifrom Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate
Accounting Policies: Basis of Presentation
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Town of North Wilkesboro has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Loan Programs
Accounting Policies: Basis of Presentation
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Town obtained a loan in the amount of $1,973,196 from the North Carolina Environmental Quality. During the year, $269,304 was expended.